Scrap demand among Taiwanese steel mills may drop in May

Published: May 20, 2015 15:26

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The demand for scrap from Taiwanese steel mills is likely to drop during May, according to The Steel Index.

TAIWAN May 20 2015 10:50 AM

TAIPEI (Scrap Register): The demand for scrap from Taiwanese steel mills is likely to drop during May, according to The Steel Index.

This is as a consequence of restrictions on electricity usage kicking in, along with the fact that local demand for finished products remains weak.

Mills are unable to push up the price of long products in the domestic market and, thus, they can only tolerate lower prices when bidding for imported scrap.

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The market outlook for long steel products in Taiwan remains very negative as participants perceive no way for demand to increase in the near future.

However, the monthly average for Taiwanese scrap imports of HMS #1&2 80:20 fell by $2.40 a ton month-on-month during April to $230 ton CFR Taiwanese port.

Prices of imported ISRI grade scrap have now dropped below $230 a ton and most believe that, in order for mills to survive, scrap prices need to remain suppressed.

(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)

The Steel Index scrap demand Taiwanese steel mill

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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